Although it is painful to admit it, Infiniti has made some questionable business decisions in the recent past and as a result, has lost much of the brand equity that it has built over the years. This is a pity, as some previous Infiniti models, such as the G35 and soon to be defunct G37, were very special cars. Furthermore, in changing the naming convention of their models to the new Q- and QX- system, Infiniti has destroyed the goodwill associated with their model lineup. Consumers do not know that the M sedan, which beat the BMW 5 Series in a C&D comparison test, continues as the “Q70”. Consumers who see their neighbor’s nice 2012 JX crossover will now be confused that this name no longer exists and has been replaced by the “QX80”.
This, along with Infiniti’s “me too” approach in softening and genericizing their cars to appeal to Asian consumers, has made their brand anonymous, confusing, and much less special than it once was. Among all luxury car brands, Infiniti is the only brand that does not currently offer a single car that I would consider buying, except the legacy G sedan or coupe, which will soon be continued. Perhaps the fact that Infiniti still produces the 2013 G sedan says something about the consumer response to their new models.
Some parallels can be drawn between Infiniti and Acura. Both are luxury divisions of Japanese companies that are still considered a tier below the Germans or even Lexus. Both brands have attempted to broaden their market base by making their cars less unique and more like the market status quo. However, Acura has made a strategic decision to target the price point that is just above the non-luxury market. Acura no longer wants to compete with Audi or BMW. By making new cars like the TLX, they are focusing on buyers who would otherwise buy an Accord EX-L or Toyota Avalon. By doing so, I believe that Acura can not only deliver outstanding value, but might be able to find a viable, albeit limited, market niche.
If anything, Honda has shown an admirable willingness to admit and try to fix their mistakes, thereby partially redeeming themselves in the eyes of their customers. Consider the dramatic 2013 overhaul of the poorly received 2012 Honda Civic, or the redesign of the 2012 Acura TL, whose previously over ostentatious “beak” grill ruined the car to potential buyers.
Infiniti, on the other hand, continues to chase BMW and Mercedes by making more expensive cars that offer their interpretation of advanced technology. The problem is that Infiniti has neither the name recognition of these German competitors, nor the engineering or manufacturing capabilities that differentiate the Germans from other companies. On top of this, the Chinese market, the focus of now Hong Kong-based Infiniti, has a general preference for Western car brands, rather than Japanese brands like Infiniti or Lexus. Until Infiniti finds a new brand identity or a better way to distinguish itself, they will continue to fight an uphill battle and remain in the shadow of other brands.